The Middletown Press (Middletown, CT)

A boom with no bloom?

Despite healthy job market, many workers feel devalued by reduced pay, benefits, security

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KenWhite had a good job at a credit card processor for 22 years, but hewas laid off in the Great Recession.

Today, at 56, White does similar work. Yet everything feels different. He’s a contractor for a technology services firm that assigns him to manage tech projects for a regional bank. He’s paid just twothirds of his old salary. The bonuses and stock awards he once earned are gone.

Despite the U.S. economy’s job growth, White and others like him don’t feel like beneficiar­ies of the longest expansion on record. The kinds of jobs they once enjoyed — permanent positions, with bonuses and opportunit­ies to move up— are nowrarer.

“It’s not as easy as it was,” White says

White’s evolution fromemploy­ee to contractor is emblematic of a trend in the American workplace: The economy keeps growing. Unemployme­nt is at a halfcentur­y low. Yet many people feel their jobs have been devalued by employers that increasing­ly prioritize shareholde­rs and customers.

Economic research, government data and interviews with workers sketch a picture of lagging wages, eroding benefits and demands for employees to do more without more pay. Experts say a confluence of forces are at play: globalizat­ion, workplace automation, a decline of labor unions, fiercer price competitio­n and outsourcin­g.

“We’ve made decisions and baked into the structure this extreme inequality,” said Barbara Dyer of the GoodCompan­ies, Good Jobs Initiative at MIT’s Sloan School of Management.

Acollabora­tive analysis of the 2018 General Social Survey byThe APNORCCent­er andGSSstaf­f finds more people saying work has grownmore demanding. Around one in three Americanwo­rkers said they face too muchwork to do everything well. About one in five held a job other than their main one. About threequart­ers had to work extra hours beyond their usual schedule at least once a month. Those numbers are up from 2006.

AFederalRe­serve Bank of St. Louis analysis found corporate profits have far outpaced employee compensati­on since the early 2000s.

Paul Nota has worked at CVS in Massachuse­tts since 2002 in several roles: technician, supervisor, assistant manager. He likes CVS and still works there part time. But he’s noticed a change from earlier days, when he felt CVS “thought of the employee first” — with small appreciati­ons like company barbecues.

Those gestures are mainly gone, he said, while the company asks for more.

Nota, 32, juggles helping people in line, answering calls and handling the drivethru. He said they’ve been told they could soon be giving flu shots, but notes they won’t get extra pay.

“It’s all about rapid growth now,” he said. “Howcan you help the bottom line? Andthatway is not paying your employees much.”

CVS spokesman Mike De Angel is said the company has madeworkfl­ows more efficient with tools such as newphone technology. CVS last year raised minimumsta­rting pay to $ 11 an hour and stepped up pay raises. DeAngelis said turnover among pharmacy technician­s has declined.

Another trend that has disrupted life for someworker­s is whencompan­ies outsource jobs not central to their business.

Companies looking to “to get out of the messy job of employing people” shed janitors, security guards or tech support, said DavidWeil, dean of the Heller School of Social Policy and Management at Brandeis University and a former O ba ma administra­tion official.

Weil’s 2014 book “TheFissure­d Workplace” documented howcompani­es hire outside firms to dowork formerly done inhouse. These companies hire people at lower pay with fewer benefits and job protection­s and in some cases outsource work to still other companies. Sometimes, workers are hired as contractor­s, who are technicall­y selfemploy­ed even though they report to the same workplace. .

Hotel brands such as Marriott, Hyatt andHilton nowoperate this way. Uber and Instacart are other examples. So are universiti­es that increasing­ly rely on adjunct professors and distributi­on centers that use independen­t contractor­s.

Experts say there’s no definitive data on howmany Americans have these kinds of jobs, only that they’re increasing­ly common.

RuthMilkma­n, a City University of NewYork labor sociologis­t, said people most affected used to be blue collar workers but fissuring has crept up the income scale into tech jobs and others that require college degrees.

Deunioniza­tion has also eroded workers’ influence, she said. TheU.S. Bureau of Labor Statistics finds the proportion of wage and salary workers in unions was just 10.5 percent in 2018, downfrom 20.1 percent in 1983.

Beginning in the 1970s, experts said, more public companies began to make shareholde­rs their top priority.

Workers since then have been “devalued as stakeholde­rs,” said AdamSeth Litwin, associate professor at Cornell’s School of Industrial and LaborRelat­ions. “Whenworker­s had more power, they had a larger share of that income and of that income growth.”

KenHou Lin, a University of Texas at Austin sociology professor, has found a greater focus bycompanie­s on shareholde­rs typically leads to an employment decline, with bluecollar production and service workers hit hardest.

Retail is among the hardest hit sectors since the recession. Nearly 16 million people work for U.S. retailers. Several have filed for bankruptcy protection this year, and thousands of stores have closed.

Such pressures weigh onworkers like Patty Tamez, who started at Gap in 2006 and notices a decline. Shipments and store changes can come with little warning. Shifts are sometimes cut with less than a day’s notice.

“I do schedules, and sometimes it’s like, ‘OK, howI’mgoing to get this done?’ ” said Tamez, of Fort Worth, Texas.

Gap spokeswoma­nTrina Somera said most stores aren’t hit by unschedule­d deliveries, and that Gap discourage­s schedule changes in the sameweek, but it does happen occasional­ly.

Tamezwaswa­rned that her workweekwo­uld be cut from 40 hours to 32. She decided to leave and found a job at Target that she likes.

Still, she wonders if she has a future in retail.

 ?? Associated Press ?? Ken White, of Providence, R.I., was laid off from his job in 2009 after 22 years as a data center manager for a company in Omaha. He made a good salary and had bonuses, and received a severance package he was able to live off for many months until he found a job as a contract worker with a consulting firm in Providence. He now makes 70 percent of his old salary, and no bonuses.
Associated Press Ken White, of Providence, R.I., was laid off from his job in 2009 after 22 years as a data center manager for a company in Omaha. He made a good salary and had bonuses, and received a severance package he was able to live off for many months until he found a job as a contract worker with a consulting firm in Providence. He now makes 70 percent of his old salary, and no bonuses.

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